In lack of fresh negative triggers and falling commodities prices, the Indian market ended Tuesday on a high note. Benchmarks Nifty50 and Sensex ended higher by 1.8% each amid positive global cues. After going past 15,700, Nifty settled at 15,638, while the 30-share index Sensex gained over 900 points to end at 52,532.  

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The support came from both broader market and sectoral indices. In the broader market, small cap and mid cap stocks witnessed huge buying interest. Nifty midcap and small cap closed higher by 3.5% and 3.4% respectively.  

Among sectoral indices, Nifty Oil & Gas, PSU Bank rose between 4-5 per cent, while Nifty Metal gained almost four per cent and IT over three per cent as all sectoral indices ended in the green.  

Titan, Hindalco, Coal India, JSW Steel, Tata Motors, State Bank of India, TCS, HCL Tech gained on benchmark indices with only two stocks—Nestle India and Apollo Hospitals, declining on Tuesday.  

As the market extended its gains for the second day on Tuesday, here is what experts make of the current trends in the market.  

Vinod Nair, Head of Research at Geojit Financial Services 

Absence of fresh selling triggers in the domestic and global economy along with falling commodity prices relieved the heavily discounted equity market to showcase recovery.  

The recovery indicates that the current uncertainties of inflation and monetary policy tightening have been factored in. However, with the highly sensitive nature of the current equity market, even the slightest inconvenience can trigger volatility. 

Santosh Meena, Head of Research, Swastika Investmart Ltd 

The market has witnessed a bounce back due to positive sentiment in the global equity markets. Post a major correction from 16800 to 15183, the market has witnessed a short-covering rally. However, a major pullback can be expected only above 16000 levels. 

Investors can start deploying gradually and use the buy on dips strategy in the current situation. SIP should be continued, and ongoing correction is a good buying opportunity to deploy more cash for the long term. However, there is an outside risk of a further 10-15℅ correction therefore, going lump sum is not the right strategy in current markets. 

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas  

The Nifty was stuck in a range of 15200-15400 for the last couple of sessions. On June 21, it moved out of the range with a gap up opening and surpassed the hurdle of 15400. Consequently, the index zoomed towards the subsequent hurdle i.e., 15670-15700.  

This area was earlier acting as a support zone & is now posing as a resistance zone as per the principle of role reversal. Unless the level of 15700 gets taken out on a closing basis the index can move back towards 15400. Structurally, the Nifty is expected to see a consolidation where the tight range would be 15400-15700. 

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. 

Finance ministry's latest Monthly Economic Review warns about the stress in government's finances caused by the rising food and fertiliser subsidies and revenue forgone from cuts in petrol and diesel taxes. Both fiscal and current account deficits are likely to deteriorate surpassing budget estimates.  

This macro headwind can turn out to be a headwind for markets too, particularly if crude remains at elevated levels. Investors should seek the safety of fundamentally strong large-caps during this phase of market turbulence. 

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)